The United States and Japan will step up their defence cooperation to deal with the threat from nuclear-armed North Korea as tensions in East Asia remain high, officials from the two allies said on Thursday.

Vic gas power plant plans shelved

EnergyAustralia has shelved plans to build a gas-fired power station in Victoria due to falling wholesale prices and energy demand.

EnergyAustralia said it had told the Victorian government it had deferred work on its request for planning permission to develop and operate an Open Cycle Gas Turbine power station in Yallourn, east of Melbourne.

The proposal allowed for the plant to be converted to a 1000MW Combined Cycle Gas Turbine plant.

EnergyAustralia's group executive manager, energy markets, Mark Collette, said the falling wholesale prices combined with the recent further deterioration in energy demand had led to the decision.

He said the falling demand meant the plant was not likely to be required until much later in the decade.

"We have therefore decided to put the development on hold until market conditions improve," he said.

"We are seeing further deterioration in the energy market and wholesale prices, and we don't expect conditions to improve in the foreseeable future.